UK house prices could crash by as much as a fifth if Boris Johnson pursues a no-deal Brexit, and the biggest falls would be in London and Northern Ireland, a leading accountancy firm has said. Reflecting the potentially vulnerable state of the property market as Brexit looms, KPMG said house prices would fall by between 5.4% and 7.5% across different regions next year if a new agreement with Brussels was not in place by 31 October.

The analysis of average house prices across the country showed no deal could trigger a nationwide decline of about 6% in 2020 and that and a drop of between 10 and 20% was not out of the question if the market reacted more strongly than expected. House price growth across Britain has slumped since the EU referendum three years ago, and prices fell across the south of England in August for the first time since the last recession in 2009. Assessing the impact of a no-deal Brexit on local economies, KPMG said house prices in Northern Ireland and London could fall by as much as 7.5% and 7% respectively, because of their greater connectivity with EU trade.

Despite the value of the average home in the capital potentially falling to £422,000 next year as a result of no-deal Brexit ' down from £453,000 if an agreement is reached ' KPMG said it would still have the highest cash prices in the country. Should Johnson strike an agreement to leave the EU with a deal on 31 October, KPMG suggested house prices would continue to rise next year, growing by about 1.3%.

About the Author: Glen Callow

Prime Accountants News Centre

Do you need to talk to us about any of the news, information or resources on our website?